BILL NUMBER: AB 2720	CHAPTERED  09/30/00

	CHAPTER   975
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN SENATE   AUGUST 30, 2000
	AMENDED IN ASSEMBLY   MAY 16, 2000

INTRODUCED BY   Assembly Member Olberg

                        FEBRUARY 25, 2000

   An act relating to the Political Reform Act of 1974, and making an
appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2720, Olberg.  Political Reform Act of 1974:  Bipartisan
California Commission on Internet Political Practices.
   Existing law, the Political Reform Act of 1974, among other
things, requires the disclosure of campaign contributions and
expenditures.
   This bill would create the Bipartisan California Commission on
Internet Political Practices consisting of 13 members, to examine the
issues, including disclosure, posed by political activity on the
Internet.  The members of the commission would be appointed by the
Governor, the Senate Committee on Rules, the Minority Floor Leader of
the Senate, the Speaker of the Assembly, the Minority Floor Leader
of the Assembly, the Secretary of State, and the Chairperson of the
Fair Political Practices Commission, as specified.
   This bill would require the commission to examine the various
issues posed by campaign activity on the Internet in relation to the
goals and purposes of the Act, and make recommendations for
appropriate legislative action, if any.
   This bill would require the commission to report its findings and
recommendations to the Legislature not later than December 1, 2001.
It would provide that the committee would cease to exist on January
1, 2002.
   This bill would appropriate $220,000 from the General Fund to the
Controller for allocation to the Bipartisan California Commission on
Internet Political Practices for the purposes of the bill.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) As candidates, campaign committees, organizations, groups,
business entities, and individuals explore and develop new uses of
the Internet for political purposes in California, political activity
on the Internet will increase exponentially.
   (b) As a medium for political activity, the Internet is unique
because it transcends political and geographic boundaries worldwide.
It permits any candidates and committees to engage in fundraising
and campaigning, and permits individuals, groups, and others to
engage in political speech and other political activity that could
constitute the type of activity subject to regulation under the
Political Reform Act of 1974 (the Act).
   (c) The Act predates the development of the Internet by nearly two
decades.  The Act is intended to inform the electorate and to
prevent the corruption of the political process by public disclosure
of contributions and expenditures to candidates and public officials.
  However, the Act is silent on its application to political activity
on the Internet.
   (d) Recent efforts by the Federal Elections Commission (FEC) to
apply the Federal Election Campaign Act of 1971, as amended, to
political activity on the Internet caused strong criticism to the
commission's interpretive rulings.  The FEC has now embarked on a
formal inquiry in order to assess the federal act and regulations to
political activity on the Internet.  The FEC is currently reviewing
the more than 1,200 comments received to determine the content of
future regulatory changes.
   (e) Because political activity on the Internet presents novel and
difficult issues, and because questions exist as to the extent that
the Internet as a medium should be, or can be, subject to state
regulation, there exists a need for a study to address the  issues
presented by political activity on the Internet and on the
desirability of state regulation in light of the goals and purposes
of the Act.
  SEC. 2.  (a) The Bipartisan California Commission on Internet
Political Practices is hereby established.  The commission shall
consist of thirteen members appointed as follows:
   (1) Three members appointed by the Governor, one of whom shall be
a member of the Democratic Party, and one of whom shall be a member
of the Republican Party.
   (2) Two members appointed by the Senate Committee on Rules.
   (3) One member appointed by the Minority Floor Leader of the
Senate.
   (4) Two members appointed by the Speaker of the Assembly.
   (5) One member appointed by the Minority Floor Leader of the
Assembly.
   (6) Two members appointed by the Secretary of State, one of whom
shall be a member of the Democratic Party, and one of whom shall be a
member of the Republican Party.
   (7) Two members appointed by the Chairperson of the Fair Political
Practices Commission, one of whom shall be a member of the
Democratic Party, and one of whom shall be a member of the Republican
Party.
   (b) Each appointing authority shall seek to appoint individuals
with diversified backgrounds and expertise to ensure that the
membership of the California Commission on Internet Political
Practices is familiar with, among other matters, all of the
following:
   (1) The magnitude of change posed by Internet technology.
   (2) Political campaign practices and trends.
   (3) Legal developments concerning political speech, the Internet,
and the Act.
   (4) The concerns of public interest groups.
   (c) The Bipartisan California Commission on Internet Political
Practices shall meet and select a chairperson from among its members
not later than 45 days after the effective date of this act. The
chairman may hire a director, a secretary, and a legal adviser to
assist with the work of the commission.
   (d) The Bipartisan California Commission on Internet Political
Practices shall examine the various issues posed by campaign activity
on the Internet in relation to the goals and purposes of the Act,
and make recommendations for appropriate legislative action, if any.
The examination of issues should include, but are not limited to,
the following:
   (1) Whether political communications on the Internet, especially
those that expressly advocate support for or opposition to clearly
identified candidates for elective office or ballot measures should
be subject to the campaign finance disclosure requirements of the
Act.
   (2) Whether costs associated with the development of campaign
websites should be disclosed to the public, and whether they should
be treated, depending on the circumstances, as reportable
contributions, expenditures, independent expenditures, or payments.
   (3) Whether websites created by individuals, sometimes referred to
as "fan sites," that contain references to candidates and measures,
or urge support or opposition to candidates or measures, or that
provide hyperlinks to official campaign sites, should be treated
differently from sites created by political parties, candidate and
ballot measure committees, or independent committees.
   (4) Whether the identity of publishers of websites that feature
political campaign activity should be required to be disclosed
similar to current identification requirements for persons who pay
for printed or broadcast advertising.
   (5) Whether current laws are adequate to protect against fraud,
libel, or slander in the context of Internet political activity.
   (6) Whether any disclosure requirements should be imposed on
Internet political activity in order to encourage the broadest
possible citizen participation in the electoral process.
   (7) Whether the Act is an appropriate regulatory vehicle for
campaign activity at the state level, or whether a different
regulatory structure for Internet campaign activity should be
developed, if any.
   (e) The meetings of the Bipartisan California Commission on
Internet Political Practices shall be open and public.  The
Commission members shall receive one hundred dollars ($100) per diem
for each day of attendance at a meeting of the commission, not to
exceed 10 meetings.
   (f) The Bipartisan California Commission on Internet Political
Practices shall report its findings and recommendations to the
Legislature not later than December 1, 2001.  The commission shall
cease to exist on January 1, 2002.
  SEC. 3.  The sum of two hundred twenty thousand dollars ($220,000)
is hereby appropriated from the General Fund to the Controller for
allocation to the Bipartisan California Commission on Internet
Political Practices to defray the costs of the committee in
conducting the study and preparing the report required by this act.
